Curbs on Russian oil put pressure on India's traditional sources: FM Nirmala Sitharaman

New Delhi, May 8

The blockade on Russian oil was resulting in pressure on other sources that were traditionally being used by India to buy crude, said Union Finance Minister Nirmala Sitharaman.

The blockades were “constraining us” as traditional buyers from Russia were shifting to sources from the Indian basket of crude, 80-85 per cent of which is from the Middle East. This shift could put more pressure on the Indian crude basket price.

“The sanctions have resulted in people rushing to alternative sources where countries like us are there for decades. Now suddenly it will be crowded with more people who want to buy the same thing. So, supply and price factors will now have its ramification on us,” she said in Mumbai at an awards function while making it clear that India would continue to buy crude from wherever it was available cheaply.

She justified RBI’s move to raise the policy rates and said it came as a surprise because it was done between two monetary policy reviews.

“In a way, it was a synchronised action. Australia did it, and the US did it that night. So, I see a greater understanding among central banks nowadays,” the minister added.

G7 nations to phase out crude import

Wilmington: Group of Seven (G7) nations committed on Sunday to ban or phase out imports of Russian oil and the United States unveiled sanctions against Gazprombank executives and other businesses to punish Moscow for its war against Ukraine. Reuters

Need cheaper fuel

We’ll go ahead with what is good for us. We need cheaper fuel. If it is available, why won’t we want to buy it? — Nirmala Sitharaman, Union Finance Minister